We issue equity awards to our employees and non-employees in the form of stock options, restricted stock units (“RSUs”) and performance based RSUs (“PRSUs”). Additionally, we also offer an employee stock purchase plan (“ESPP”) to our eligible employees. We use the Black-Scholes option pricing model to value our stock options granted and the estimated shares to be purchased under the ESPP. For both RSUs and PRSUs, we use our common stock price, which is the last reported sales price on the grant date to value those securities.

In general, we recognize stock-based compensation expense on a straight-line basis over the requisite service period and record forfeitures as they occur. For PRSUs, we use the graded vesting method to calculate the stock-based compensation expense. At each reporting period, we recognize and adjust the stock-based compensation expense based on our probability assessment in meeting our PRSUs' performance conditions.

The following table summarizes the total stock-based compensation expense, by operating expense category, recognized in the Condensed Consolidated Statements of Operations for the periods presented below (in thousands).


	Fiscal Quarters Ended				Fiscal Years-to-Date Ended
	July 5, 2026		June 29, 2025		July 5, 2026		June 29, 2025
Cost of revenue	$	490	$	356	$	935	$	477
Research and development	4,620		6,941		9,690		13,296
Selling, general and administrative	7,924		6,825		14,174		12,363

Total stock-based compensation expense	$	13,034	$	14,122	$	24,799	$	26,136

For the fiscal year-to-date ended July 5, 2026 and June 29, 2025, we capitalized $0.7 million and $0.2 million, respectively, of stock-based compensation as property and equipment, net on the Condensed Consolidated Balance Sheet. There was no recognized tax benefit related to stock-based compensation for the periods presented. In addition, we accrued $2.1 million of bonus to be settled in equity awards as accrued compensation on the Condensed Consolidated Balance Sheet as of July 5, 2026.

As of July 5, 2026, there was approximately $96.1 million of total unrecognized stock-based compensation expense related to unvested equity awards, which are expected to be recognized over a weighted-average period of 2.8 years. As of July 5, 2026, there was approximately $0.5 million of total unrecognized stock-based compensation related to the ESPP, which is expected to be recognized over a period of 0.98 years.

The following table summarizes stock option activities for the fiscal year-to-date ended July 5, 2026 (in thousands, except share, per share and contractual life amounts).


	Number of Options Outstanding	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value (1) (2)
Balances as of December 29, 2025	1,206,554	$	9.69	5.2	$	219

Exercised	(4,730)	0.05
Forfeited	(69,623)	8.81
Balances as of July 5, 2026	1,132,201	$	9.78	4.4	$	99
Vested and expected to vest at July 5, 2026	1,132,201	$	9.78	4.4	$	99
Vested and exercisable at July 5, 2026	1,131,367	$	9.77	4.4	$	99
Unvested and exercisable at July 5, 2026	834	$	17.99	0.3	$	—


(1)			The intrinsic value of options exercised is based upon the value of our stock at exercise.
(2)			The aggregate intrinsic value of the stock options outstanding as of July 5, 2026 represents the value of our closing stock price at $5.36 on the last trading day of the quarter ended July 5, 2026 in excess of the exercise price multiplied by the number of options outstanding.

The following table summarizes RSUs and PRSUs activities for the fiscal year-to-date ended July 5, 2026 (in thousands, except share and per share amount).


	RSUs			PRSUs
	Number of Shares Outstanding	Weighted Average Grant Date Fair Value		Number of Shares Outstanding	Weighted Average Grant Date Fair Value
Issued and unvested shares balances as of December 29, 2025	10,336,628	$	8.75	2,047,638	$	7.51
Granted	6,078,478	5.45		2,230,318	5.14
Vested	(2,856,396)	8.37		(16,748)	8.25
Forfeited	(1,489,300)	9.43		(945,580)	7.35
Issued and unvested shares outstanding as of July 5, 2026	12,069,410	$	7.09	3,315,628	$	5.99